Whether Srvice Tax applicable?

This is plainle Sale of Goods & No Service Tax is payble

May be applicable. Mainly depends on scope and drafting of your agreement

Please let us know whether the ownership of the property has been passon to the buyer ? If not, when the buyer would be able tio use the right of ownership. 

ownership has already been transferred when agreement has been made.

i.e. on date of agreement only

The ownership has been passed to the Firm 2. And also looks like there is no service provided by the firm 1 to Firm 2.Hence service tax should not be applicable

hi all,

while paying rental income after 1-6-2007 tds on rent  will be applible inclusive of service tax or exclusive service tax

Dear Friend,

Although, one can give a definite opinion only after scrutinising the agreement, following is the general view.

If there is a periodical payment in consideration of transfer of 'right to enjoy the property', then the transaction is 'lease'. [see Section 105 of Transfer of Property Act]. It is immaterial that the agreement calls it by some other name.

Renting of immovable property for business purposes has become a taxable service w.e.f. 01.06.2007.

Thanks,

S. R. Dwivedi

As per circular no.4/2008 dated 28.4.2008 tds on rent is excluding service tax.

as per circular no.4/2008 dt28.4.2008 tds on rent will exclude service tax